Honda Exits Canada and Mexico, Consolidates Car Production in U.S.

INSUBCONTINENT EXCLUSIVE:
This move responds directly to new U.S
tariffs on imported vehicles.The company aims to manufacture 90% of the cars it sells in the U.S
within the country
This figure marks a significant jump from the current 70% of vehicles produced locally.Honda will move production of key models, including
the CR-V and Civic, from Canada to the U.S
The company will also relocate HR-V production from Mexico to American plants.Honda will build the next-generation Civic hybrid in Indiana
instead of Mexico
These changes will require new investments and adjustments to supply chains
The U.S
including its Acura brand
Of these, around 400,000 vehicles came from Canada and Mexico
The company wants to cut this number to less than 150,000 within two to three years.Honda Exits Canada and Mexico, Consolidates Car
Production in U.S
(Photo Internet reproduction)Honda Shifts U.S
Strategy to Dodge TariffsHonda faces high costs if it continues importing vehicles from its neighbors
The new 25% U.S
tariff could cost the company up to $4.57 billion each year
By moving production, Honda aims to avoid these costs, even though U.S
labor and operations are more expensive.To support the production increase, Honda will hire more American workers
The company will add a third shift at its U.S
plants and extend operations to weekends
This transition will take at least two years as Honda adapts its workforce and supply chains.Other Asian automakers are making similar moves
Nissan considers shifting Rogue SUV production from Japan to the U.S
Hyundai plans to expand its U.S
trade policy on global manufacturing
This shift marks a clear response to rising trade barriers and changing economic realities in North America.